According to a BTC report by the financial institution Grayscale, Bitcoin may climb to a new all-time high in 2026. The report highlighted that investors have enjoyed high returns with BTC, but have also endured substantial challenges. Despite the ongoing market correction, Grayscale “does not believe Bitcoin is on the cusp of a deep and prolonged cyclical drawdown.” Let’s discuss why Grayscale believes BTC will rebound in 2026.

Why is Grayscale Bullish on Bitcoin?

According to the report, investing in Bitcoin (BTC) has historically given stellar returns, as much as 35%-75% over the last three or five years. Despite the incredible returns, Grayscale also highlights the sharp market corrections that have plagued BTC’s growth.

Grayscale is confident that Bitcoin (BTC) will make a comeback very soon. Some of the catalysts that the report cites include another rate cut from the Federal Reserve and bipartisan progress on crypto legislation. The chances of another interest rate cut from the Fed have significantly increased over the last week. Moreover, there is a high chance that Fed Chair Jerome Powell will be replaced by Kevin Hassett. The National Economic Council Director is expected to further reduce rates if he assumes office.

One of the most significant points in Grayscale’s report is around Bitcoin’s 4-year cycle. The original crypto has roughly followed a 4-year cycle of hitting a peak and then crashing. Grayscale believes that BTC will not follow a 4-year cycle, but a 5-year cycle. Going by that calculation, the original crypto could climb to a new all-time high in 2026.

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ETF inflows are also expected to pick up the pace over the coming weeks. ETFs have played a key role in Bitcoin’s (BTC) rise to new peaks over the last year. ETF inflows, an interest rate cut, macroeconomic improvements, and legislative developments may together push BTC to never-before-seen price levels.